What is the Crave franchisee's obligation to meet the Minimum Performance Schedule?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You hereby acknowledge that your timely development of the Franchised Businesses in the Development Area in accordance with the Minimum Performance Schedule is of material importance to us and you. You agree, as a condition of the continuance of the rights granted hereunder, to develop and open Franchised Businesses within the Development Area in accordance with the Minimum Performance Schedule, to operate such Franchised Businesses pursuant to the terms of the Franchise Agreements and to maintain all such Franchised Businesses in operation continuously. We agree to diligently act upon any request of or approval from you and any material delay in your ability to meet the Minimum Performance Schedule which is directly caused by our failure to act diligently upon a request for approval shall not constitute a default hereunder. Further, a failure or delay in performance by any party to this Agreement shall not be a default hereunder if such failure or delay arises out of or results from a Force Majeure, which for purposes of this Agreement shall be defined as fire, flood, earthquake or other natural disasters, or acts of a public enemy, war, rebellion or sabotage. Force Majeure shall not include your lack of financing.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees must develop and open Franchised Businesses within their Development Area according to the Minimum Performance Schedule. This timely development is considered a material condition for the continuation of the rights granted to the franchisee. Franchisees are also obligated to operate these Franchised Businesses according to the terms of the Franchise Agreements and maintain continuous operation.
Crave also commits to acting diligently on any requests or approvals from the franchisee. Any material delay in the franchisee's ability to meet the Minimum Performance Schedule that is directly caused by Crave's failure to act diligently on a request for approval will not be considered a default by the franchisee.
Furthermore, the FDD states that a failure or delay in performance by either party will not be considered a default if it arises from a Force Majeure event. These events include fire, flood, earthquake, other natural disasters, acts of a public enemy, war, rebellion, or sabotage. However, the franchisee's lack of financing is explicitly excluded from the definition of Force Majeure.